Rocket Pharmaceuticals Stock Surges on Jefferies' Buy Rating and $29 Price Target
Jefferies initiates coverage on Rocket Pharmaceuticals with a strong buy recommendation, highlighting promising gene therapies targeting rare diseases.
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Highlights
- Jefferies launches coverage of Rocket Pharmaceuticals with a 'buy' rating, driven by the biotech's innovative gene therapy pipeline.
- Price target set at $29, representing significant upside potential.
- Analysts emphasize optimism around Rocket's RP-A501 treatment for Danon heart disease, a rare genetic cardiac disorder with no current therapies.
Shares of Rocket Pharmaceuticals (RCKT) experienced a 5.5% intraday rise following Jefferies’ initiation of coverage at a 'buy' rating, fueled by confidence in the company's experimental gene therapies. The $29 price target suggests more than double the current stock value.
Jefferies analysts highlighted that Rocket is advancing over five gene therapy candidates for rare diseases, focusing particularly on RP-A501 (AAV9) aimed at treating Danon heart disease, a severe genetic heart condition lacking existing treatments.
The therapy is projected to have a 65-75% likelihood of success in a pivotal Phase II clinical trial scheduled for next year, potentially unlocking a $1 billion market opportunity. Positive trial outcomes could propel Rocket’s stock price by up to 100%, indicating an attractive risk/reward profile at a $1.3 billion market cap.
Valuation based on discounted cash flow (DCF) and sum-of-the-parts (SOTP) analysis supports the $29 target, reinforcing Jefferies’ bullish stance.
This development marks a promising turnaround for Rocket Pharmaceuticals investors after a challenging period. Despite a nearly 60% decline in 2024 and a recent two-year low, today's gains signal renewed investor interest.
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